Transcript: Kolibri Global Energy Q2 2026 Earnings Conference Call

On Thursday, Kolibri Global Energy (TSX: KEI ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. This content is powered APIs. For comprehensive financial data and transcripts, visit Access the full call at Summary Kolibri Global Energy Inc.

5 million, a 109% increase from the previous year. 24, nearly a 200% increase from the prior year. Strategically, the company is focusing on the False Caney formation, starting with the Lavina 8-5-1HF well, which has shown promising oil saturation data, potentially opening new reserves. The company's borrowing base increased by 15% to $75 million, providing greater financial flexibility.

Management expressed optimism about future production growth, particularly from four new wells expected to contribute in the fourth quarter, and remains cautious yet hopeful about the outcomes of the False Caney test. Full Transcript OPERATOR (Operator) Good day and welcome to Kolibri Global Energy's second quarter 2026 financials conference call. All participants will be in a listen-only mode. Media may monitor this call in a listen-only mode.

They are free to quote any member of management but are asked to not quote remarks from any other participant without the participant's permission. If anyone has any trouble and needs assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone, and to withdraw your question, please press star then two.

Please note this event is being recorded. I advise participants that this conference call is being recorded today, August 13, 2026. This call will be available on the company's website at Here is a disclaimer. This call may include forward-looking statements and forward-looking information regarding Kolibri's strategic plans, anticipated production, capital expenditures, exit rates, cash flows, reserves, and other estimates and forecasts.

Forward-looking information is subject to risks and uncertainties, and actual results will vary from the forward-looking statements. This call may include future-oriented financial information and financial outlook information which Kolibri discloses in order to provide readers with a more complete perspective on Kolibri's potential future operations and such information may not be appropriate for other purposes.

For a description of the assumptions on which such forward-looking information is based, the applicable risks and uncertainties, and Kolibri's policy for updating such statements, we direct you to Kolibri's most recent Annual Information Form and Management Discussion and Analysis for the period under discussion as well as Kolibri's most recent corporate presentation, all of which are available on Kolibri's website. Listeners should not place undue reliance on forward-looking information. Kolibri undertakes no obligation to update any forward-looking, future-oriented financial or financial outlook information other than as required by applicable law.

I would now like to turn the call over to Mr. Wolf Regener, the President and CEO of Kolibri Global Energy Inc. Please go ahead, sir. Wolf Regener, President and CEO Thank you, and thank you everyone for joining us today.

With me on today's call is also Gary Johnson, our Chief Financial Officer. As hopefully everyone has seen, we released our second quarter 2026 results this morning, and if you looked at them, I hope you share our excitement about the results. To say we are very pleased is an understatement. Our second quarter resulted in the company having its highest quarterly revenue, production, and adjusted EBITDA in the history of the company, and this is in spite of having three of our wells shut in for one-third of the quarter.

We also finished drilling the three Clifton Mac wells, and I'm looking forward to beginning the completion operations on those shortly. I'm also very excited that we're starting to drill the Lavina 8-5-1HF well, which is our first test of the False Caney formation. I'm looking forward to testing this bench in our field. I'm excited about this because of all the data we have.

We have a whole core that shows that the False Caney is highly oil-saturated, and it has excellent characteristics on logs from numerous wells in the field. I'm looking forward to exciting times ahead for our company. With that, I'll now turn over the call to Gary to discuss our financial results. Go ahead, Gary.

Gary Johnson, Chief Financial Officer Thanks, Wolf, and thanks everyone for joining the call. I'm just going to go over a few highlights of the second quarter and the year-to-date results, then we’ll take questions at the end of the call. S. dollars unless otherwise stated.

I'll start by going over the second quarter. 5 million, which was our highest quarterly revenue in the company's history. Revenue increased by 109% from the prior-year second quarter due to a 46% production increase and a 41% increase in average prices. Average production was up 46% to 4,690 boe per day compared to 3,220 boe per day in the prior-year quarter.

That increase was due to production from the wells that were drilled and completed during 2H25. 08 per share in the prior-year second quarter, which was an increase of almost 200%. The increase was due to higher revenue and an unrealized gain on commodity contracts, partially offset by higher operating expense and depletion expense due to the higher production. 7 million in the prior quarter, which was an increase of 114% due to higher revenues partially offset by higher OPEX and a realized loss on commodity contracts.

66 per boe in the prior quarter, which was an increase of 48%. This was due to higher average prices for the quarter, which were partially offset by higher operating expenses. 15 per boe in the prior quarter, which was an increase of 24%. 59 per boe, and also temporary higher water hauling costs compared to 2025.

2 million due to a 29% increase in production and a 19% increase in average prices. Average production for year-to-date June was up 29% to 4,688 boe per day compared to 3,646 in the prior-year period, and this increase was again due to production from the wells that were drilled during 1H25. 24 per share in the prior-year period. The increase was due to higher revenue partially offset by higher operating expense and depletion expense due to the higher production, higher interest expense, and a realized loss on our commodity contracts.

5 million in the prior-year period, an increase of 52% due to higher revenue partially offset by higher operating expenses and a realized loss on commodity contracts. 05 per boe in the prior-year period. This was due to higher average prices partially offset by higher operating expenses. I also wanted to add that our credit facility was redetermined in the second quarter and our borrowing base was increased by 15% from $65 million to $75 million.

A continued increase in our borrowing base gives us more flexibility in managing our working capital going forward, and it also demonstrates the growing value of our property. As you can see, last year's drilling program led to significant increases in revenue and cash flow across both the second quarter and the first half of the year. We anticipate the four new wells in our 2026 drilling program will add on to this growth primarily in the fourth quarter, when the wells are expected to be contributing a full quarter of production. And with that I'll hand it back to Wolf.

Wolf Regener, President and CEO Thanks, Gary. As Gary laid out, we had a great quarter with us hitting our highest ever quarterly revenue, production, and adjusted EBITDA, and we're looking forward to more growth with the four new wells coming online. In addition, as I said in the beginning of the call, also really looking to this False Caney test. Having a successful False Caney well can open up the door to many more locations, reserves, and thus value creation for all shareholders.

And that is what I believe we are all here to do. This concludes the formal part of our presentation and we'll be happy to answer any questions you may have. OPERATOR (Operator) We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone.

If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. And we'll pause momentarily to assemble our roster. And the first question will come from Steve Ferrazzani with Sidoti.

Please go ahead. Steve Ferrazzani, Analyst at Sidoti Morning, Wolf. Morning, Gary. Obviously, great quarter, Wolf.

The surprise to us was the strength in the 2Q production and the fact that really, even if we factor in the volume adjustment by the gas purchaser, it's largely offset by the shut-in of the Alicia Renee wells. If we exclude that, there's virtually no sequential decline in production, even though you added new volume in the first half. And I'm just trying to figure out how that happens. Wolf Regener, President and CEO Well, they did well.

But yeah, no, the wells are performing well and, you know, when we bring these wells on, they flow for a while, then we put them on lift, and so we got a little boost again when we put them on lift. You know, had a little decline and then came back up again on that. And now they'll start their normal decline after that as well. So, you know, we're not going to stay flatlined, unfortunately, until we bring the new wells on, which will go back up again.

So yeah, when I think of what's going on— Steve Ferrazzani, Analyst at Sidoti When I think about that, were you—those, the 4Q wells, was it the Barnes and the Valen—were you still optimizing those wells within Q1? Is that part of the factor here? Wolf Regener, President and CEO Yeah, well, it's more along the lines of what I mentioned as far as bringing the gas compression in to the gas lift. That helps it out again.

Right. So you have some decline happening and then you can reverse some of that when you bring that on. Steve Ferrazzani, Analyst at Sidoti Got it. Gary, the gas purchaser volume adjustment—what quarter was that from?

I'm just trying to figure out how it factored into your gas and NGL realized price. Gary Johnson, Chief Financial Officer It's related to several periods in the past, going back to 2024 actually. But it's just certain wells. But yeah, it goes back quite a few months.

Quite a few years actually. Steve Ferrazzani, Analyst at Sidoti Got it, got it. You provided the updated guidance late June. Were there any new factors that weren't included in that guide, Wolf?

So we know we had the volume adjustment. I'm assuming late June you knew that; you knew the shut-in of the Alicia Renee wells. I'm sure you had a reasonable sense of the timing of the three wells you're completing now. Any factors we should be thinking about that were not in that guide?

Wolf Regener, President and CEO No, it'll just depend on how these wells do that are coming on—you know, the four wells. That's really the biggest factor on… But that's really what puts you from— Yeah, because it's a lot of production coming on at once. Right. And I mean, our production's been growing nicely.

Right. We're close to 5,000. Steve Ferrazzani, Analyst at Sidoti Absolutely. Wolf Regener, President and CEO And—but still, bringing on four wells at a time that have high IPs really moves the needle a lot one way or another for a forecast.

So that's our biggest variable. Steve Ferrazzani, Analyst at Sidoti I'll say that's what would put you to the higher end, because right now you'd be—I mean, to hit the low end of guidance, second half would be flat to first half. So it's reasonable to start thinking probably the low end is less low risk. Wolf Regener, President and CEO I don't want to overpromise anything.

So I'm— Steve Ferrazzani, Analyst at Sidoti Yeah, I understand. Wolf Regener, President and CEO Our guidance is what we have. Steve Ferrazzani, Analyst at Sidoti I'm trying to get you to—anyway, Wolf Regener, President and CEO Sorry, I'm not going to fall for that, no offense. Steve Ferrazzani, Analyst at Sidoti But bigger picture, 3Q is—based on the guide—3Q is going to be your low production quarter.

4Q is expected to be the high production quarter for the year. Wolf Regener, President and CEO Correct. You're absolutely right. Steve Ferrazzani, Analyst at Sidoti Okay.

And then the Lavina well in general—so it's a two-mile well. You haven't done a two-mile lateral before. How much of that is because it's in the False Caney, or how much of it is the geographical location in the field? What's allowing you to try the two-mile lateral for the first time?

Wolf Regener, President and CEO You know, even on these mile-and-a-half laterals, some of them are a little bit longer because we're sometimes coming into a section back a bit. So some of these mile and a half were actually a little bit longer. But really, I mean it's a quiet area. We've had no—you know, we've been able to steer still at the end of our laterals, and that was the hardest part for us in the beginning when we just had one-mile laterals, because we do have quite a bit of dip here.

We've made this so that we don't have quite as much dip here. It's in a quiet area of the field where we don't see a whole lot of faulting. We have good control around it, so we feel comfortable that we can push it to the two-mile out here on this well. Steve Ferrazzani, Analyst at Sidoti Got it.

It's an exciting time. What would make you—what are the factors in deciding whether you'll complete it or not—or we don't know? Wolf Regener, President and CEO Oh, I would imagine—unless we have a horrible drilling issue—that we'll be completing. Now, which would then—and that's the plan.

I can't imagine any scenario, I can't imagine any scenario where we wouldn't. Steve Ferrazzani, Analyst at Sidoti And would you be—timing-wise—would you be using the same spread? Wolf Regener, President and CEO It's probably—I don't know if it's going to be the same or not. It would just be a matter of timing, who's available.

Yep. For the right price too, right. So it is timing as well. So as soon as we're done drilling we'd like to get the completion crew in as quickly as possible, much like we're doing on the Clifton Mac wells here.

Steve Ferrazzani, Analyst at Sidoti Got it. Last one for me—just on the update on your production and operating costs, the water hauling—do you expect that to continue through this year? The workover is isolated to this quarter. Fair?

Gary Johnson, Chief Financial Officer Yeah, the workover is definitely isolated this quarter. Well, it was actually the first half, because it was the first quarter as well. The work from our non-op was both quarters, but yeah, it should stop now. Steve Ferrazzani, Analyst at Sidoti But the water hauling—I think it should—it's shocking how much was spent on one well— Wolf Regener, President and CEO Yes, we were shocked.

Steve Ferrazzani, Analyst at Sidoti And then the water hauling—Gary, do you think that—does that temper here, or is it around this level for the year? Gary Johnson, Chief Financial Officer It's definitely going down throughout the quarter—I mean, about the year so far. But I mean, it might be—it's probably going to be higher than last year a little bit, but not too much. But it's definitely going to temper down.

Steve Ferrazzani, Analyst at Sidoti Got it. And then just generally on cost pressures—are you seeing them around your field? Wolf Regener, President and CEO We've had some increases. I mean some of our chemical costs have come up and up, and so we're putting actually some physical things in to try to knock those chemical costs down again.

So we're in early stages of that. We think we're making some progress on that. But yeah, I mean, there's been some cost escalation, but nothing—nothing too bad. Steve Ferrazzani, Analyst at Sidoti Got it.

All right, thanks, Wolf. Thanks, Gary. Wolf Regener, President and CEO Absolutely. Thanks.

OPERATOR (Operator) The next question will come from Nicholas Pope with Roth Capital. Please go ahead. Nicholas Pope, Analyst at Roth Capital Hey, Gary. Hey, Wolf.

How are you doing? Wolf Regener, President and CEO I'm good. How are you? Nicholas Pope, Analyst at Roth Capital Good.

Got a couple quick questions here on the operations front. Curious with that Lavina well—first test here in the False Caney—you said you had that whole core look oil-saturated.